Stock Ideas - investinginafrica.net

March 12, 2013 By Ryan Hoover 10 Comments

Kenya’s Dividend Kings: Two Stocks for Income Investors

It’s tough to beat a company that pays out a regular dividend.

They generate income for shareholders. They typically boast sharp management teams. And, historically, their shares have outperformed their non-dividend-paying counterparts.

The Nairobi Securities Exchange is chock full of dividend stocks. Almost all companies listed on the market presently pay a dividend.

But not all dividend stocks are created equal. Some don’t yield much in relation to their price. Others pay out so much of their earnings that it hampers their future growth. And some disappoint shareholders with frequent dividend cuts.

So, which Kenyan stocks offer the most substantial, reliable, and growing income stream?

Let’s take a closer look.

February 26, 2013 By Ryan Hoover 6 Comments

A Simple System to Stalk Super African Stocks

The stock market can be a pretty confusing, intimidating place for new investors.

With all of its charts, ratios, and jargon, it’s clear why many people choose to either hire a professional to manage their stock portfolios or to ignore stocks altogether.

Are you one of these people?

If so, I’m glad you’re here, because, today, I’m going to show you a magic formula for picking great African stocks.

February 21, 2013 By Ryan Hoover 1 Comment

Is Africa’s Greatest Grocer a Bargain Stock?

If you’ve ever traveled in Southern Africa, I’m sure you’ve spotted a Shoprite store. Whether it be the bright red logo of their eponymous supermarkets, the upscale suburban Checkers stores, or their Hungry Lion fast food joints, the company’s dominant market presence is difficult to miss.

Clearly, Shoprite feeds a continent on the rise.

This reality is anything but revelatory to Africa investors. The company’s share price has risen exponentially as the narrative of the continent’s emerging middle class took hold.

The stock now sports a P/E ratio of 27. Is it worthy of the hype?

Filed Under: Johannesburg Stock Exchange, Stock Ideas

February 19, 2013 By Ryan Hoover 5 Comments

10 South African Stocks Poised to Beat the Market in 2013

It’s time to stick my neck out.

I’ve talked a lot about the past performance of various African stocks, and I’ve asked a number of local experts for their favorite listings. But I haven’t often gone out on a limb and made picks of my own, and many of you have noticed.

So, it’s only fair that I go on record with my best bets.

Here are my top South African stock picks. I expect that, on average, they will outperform the Johannesburg Stock Exchange All Share Index over the next 12 months.

Filed Under: Johannesburg Stock Exchange, Stock Ideas

February 5, 2013 By Ryan Hoover 4 Comments

Is KCB Bank Group Kenya’s Choicest Stock?

When I asked my friend Kamanda Morara of Ashanti Research for his best Kenyan stock pick for 2013 in mid-December, I had no idea that his choice would bear fruit so quickly.

His tip, KCB Bank Group (KNCB:KN), was trading at a price of KES27.50 at that time. This gave it a dividend yield of 6.7% and a trailing P/E ratio of just 6.5.

Someone must have been eavesdropping on our conversation.

The stock now boasts a price of KES33.50 — a gain of nearly 22% in less than two months.

So, I checked back in with Kamanda last week to congratulate him and to ask whether he felt KCB still had room to run.

Filed Under: Bank Stocks, Nairobi Stock Exchange, Stock Ideas

October 23, 2012 By Ryan Hoover 4 Comments

Is the Umeme IPO a Bargain?

It’s been a long dry spell for Ugandan IPOs. The Uganda Securities Exchange hasn’t seen a new local listing since the National Insurance Company floated some shares back in March 2010 – more than two and a half years ago.

So, when the national electricity distribution company, Umeme, launched its IPO last week it created plenty of buzz in Kampala.

Should retail investors sign up for some shares? Or should they avoid them like a live wire?

Filed Under: IPOs, Stock Ideas, Uganda Securities Exchange

August 9, 2012 By Ryan Hoover 8 Comments

6 Kenyan CEOs Who Bet Big On Their Own Stock

In a recent blog post, African stock market pundit, Coldtusker, argued that Kenya Airways’ dismal share returns can be at least partially explained by the fact that its CEO owns zero shares of the company.

His reasoning is that a boss with no skin in the game has little incentive to manage a company in shareholders’ best interests.

To test this theory, we measure the stock performance of five Kenyan companies that are managed by heavily vested CEOs to see if they beat the market over time.

Filed Under: Nairobi Stock Exchange, Stock Ideas

August 7, 2012 By Ryan Hoover 27 Comments

Should You Buy African Airline Stocks?

African airlines have been making news of late.

FastJet (RUBI:LN), a new airline backed by the head of EasyJet, will launch in Ghana in a matter of months. And, in June, Kenya Airways (KNAL:KN) concluded a capital-raise for the purpose of doubling its fleet of planes by 2016.

Both news items would seem to be bullish indicators for airline stocks.

Should investors be hopping on board or cooling their jets?

Filed Under: Airlines, Stock Ideas

July 12, 2012 By Ryan Hoover 4 Comments

Africa Investor Insight: Jonathan Kruger

Jonathan Kruger, CFA, manages the Africa Equity Fund for Prescient Investment Management in Cape Town, South Africa. Here he explains why he’s passionate about African stock markets, his investment process, and where he sees the most value now.

Filed Under: Fund Managers, Stock Ideas

June 19, 2012 By Ryan Hoover 5 Comments

Analyzing Africa’s Breweries: Which One Is Managed Most Efficiently?

It’s coming on summertime here in south-central Pennsylvania, which means the air feels a little closer, the sun shines a little warmer on my hairless head, and visions of ice-cold lagers increasingly fill my late afternoons.

So, today, instead of fighting the daydreams, I’ve decided to put them to work by analyzing Africa’s biggest breweries.

Filed Under: How to Invest in Africa, Stock Ideas

Kenya’s Dividend Kings: Two Stocks for Income Investors

A Simple System to Stalk Super African Stocks

Is Africa’s Greatest Grocer a Bargain Stock?

10 South African Stocks Poised to Beat the Market in 2013

Is KCB Bank Group Kenya’s Choicest Stock?

Is the Umeme IPO a Bargain?

6 Kenyan CEOs Who Bet Big On Their Own Stock

Should You Buy African Airline Stocks?

Africa Investor Insight: Jonathan Kruger

Analyzing Africa’s Breweries: Which One Is Managed Most Efficiently?

Free Updates

About Me